Not-for-Profit and Public Sector Accountability and Legitimacy: Evidence from Colonial New Zealand

Carolyn Fowler
Victoria University of Wellington
New Zealand

Abstract:
The lack of accountability to the community was one of the main reasons behind the New Zealand education system reforms of the 1990s. Nonetheless, during the colonial and early provincial periods (1840-1860) community accountability was a key tenet of not-for-profit and then public sector education providers. The objective of this historical archival-based paper is to examine accountability practices as the provision and control of primary education in the newly established settlement of Nelson (New Zealand) moved from not-for-profit to public sector organisations. A theoretical framework based on institutional theory informs an explanation for these changes.
Accountability to stakeholders was achieved, at various times, through the presentation of audited financial and other information at public meetings and pupil examinations, and the publication of reports and returns. The research suggests that accountability practices had a role to play as both a technique and an institution, and this role changed as control for education provision migrated between sectors. A variety of institutional pressures emanating from the wider social environment influenced this change.
To establish the legitimacy of the education provided and gain support and/or resources from influential actors and the general community, not-for-profit education organisations used audited financial statements and other accountability institutions such as public meetings and the public examination of scholars. In contrast, the public sector organisations primarily used published statistical and audited financial returns to achieve legitimacy. Additionally, some of the more successful education providers manipulated their reported financial information to gain this legitimacy.
In examining accountability in mid-nineteenth century education and associated organisations, this paper provides an understanding of external accountability practices in the past, challenges contemporary beliefs about accountability, and affords an appreciation of how and why these practices developed. It also contributes to the New Zealand and international historical literature.